5 Powerful Tips to tackle fears about investing in property
Sweaty palms? Heart beats at the speed of a jackhammer? Unsteady hands? Well, we are
not describing a medical condition here. Investors in property often get the jitters and take a
reverse turn just before signing on the dotted line in the agreement copy. One cannot blame
a potential buyer for this condition since investing in a property is probably the single largest
investment he or she may commit to during a lifetime. After all, he may be investing a huge
chunk of his savings and if he is taking a loan, he is committing to a lifetime of EMIs.
Many potential property buyers turn into fence sitters after thinking about rising property
rates, mortgage worries and excessive market speculation. In this article, we will explore
these fears and find ways to tackle them in an effective and practical manner.
1. Falling Property market: This is unarguably the single biggest fear any investor
has. Although fall in property prices can be cause of sleepless nights for buyers, it is
necessary to assess the situation from a practical viewpoint. Rather than falling
property prices, it is actually the asking value by the seller that sees a fall. Real
estate is an asset that grows at a slow pace but it returns can be measured and
quantified. Choosing a property that has good schools, shopping areas and business
hubs in the vicinity rarely see a price drop and hence should be first choices. Such
locations will always stay in demand.
2. Cost of maintenance and furnishing the flat: A new home often demands new
expenses, especially when it is unfurnished and it has to be readied for people and
their needs. Interiors, appliances, furniture and furnishings are essential expenses
one has to invest unless the property is fully-furnished and in a ready-to-move
condition. Homes with newly done interiors and painting/wallpaper are ideal choices
when selecting a home. Identify damages to the flat early and get them repaired
before they metamorphose to unmanageable proportions. Set aside some funds for
repairs or other contingencies to help you face them without breaking the bank.
3. Complicated loan or mortgage procedures: Buyers often feel that applying for a
loan and understanding the terms of the finance company or bank is a difficult task.
Excessive paperwork is also a deterrent for many property buyers and keep them
away from dealing with financial institutions. Buyers should remember that this is
avoidable so it is better to make peace with the fact and learn as much as possible
about the procedure instead of deferring the decision to buy property. Engage a knowledgeable and certified real estate professional who can guide you in such
matters and ease the process for you.
4. Fear of debt: When investing in a property, taking a loan has become quite
necessary for a large segment of buyers. However, buyers can often doubt their own
capability of repaying a home loan or falling behind on EMIs due to loss of job or any
kind of medical emergency. It is therefore necessary to take a realistic view of the
budget one can afford and also consider any kind of inconsistency that you may
encounter in future. With practical future planning and inculcating the habit of
savings, you can disable the fear of debt and face the future with confidence.
5. Loss of confidence: Buyers often get sceptical about their choice of property in
terms of wrong location, unscrupulous developers or overextending their budget.
Buyers also worry about taking a wrong decision and later repenting about it. Take
an informed decision so you know that you cannot go wrong with it ever. List out the
positives and the negatives of the selected project, check out the amenities and
make a note of the conveniences it offers. Look for a property that gives out positive
vibes in the first instance and think over your decision before committing yourself to
it. Remember there is always an ideal home waiting for you and it is a matter of time
and consistent effort that will bring you face-to-face with it.
Indulging in too much speculation, listening to unwanted advice and giving into your fears
can prove to be detrimental in this quest to secure the perfect property. The above tips will
ease your worries to a great extent.
Feeling confident already? Go ahead and take the right steps in the right direction. The
home of your dreams is just around the corner.